Going Global & Managing Global Businesses Case Study

Mahindra Scorpio Entering the US Auto Market: Advent of a Global Brand?

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Abstract:
Scorpio', a sports utility vehicle (SUV) launched by Mahindra & Mahindra (M&M) in 2002, received several 'Car of the Year' awards and became an instant hit in India. Within a few years it helped to increase the overall growth rate of the premium utility vehicle segment of the country. In 2004, M&M started exporting Scorpio to other continents. As of mid-2008, Scorpio was being exported to Europe, Africa, Asia, Middle East, South America and Australia. Gradually, with its overseas success, the company decided to launch the product in the US, the most competitive market in the world, in 2009. While some analysts opined that being a relatively unknown brand from an Indian company would negatively affect Scorpio's prospects in the US, the company officials were bullish. The recent trend in the US automobile industry suggested a shift towards smaller SUVs and cars due to a massive oil and gas price hike. Consequently, the company felt that there was a space for vehicles like Scorpio in the US market. However, whether Scorpio could make a mark in the US or not, was yet to be seen.

Pedagogical Objectives:

• To get an insight on the growth and evolution of M&M as an automobile manufacturer and its strategies for Scorpio in India
• To understand M&M's globalisation strategy
• To analyse M&M's marketing strategy for US customers.

Keywords : Scorpio; Mahindra & Mahindra; Sports Utility vehicle (SUV); Anand Mahindra; Global vehicles; US automobile market; Globalistion; Pick-up trucks; 'Car of the Year'; Marketing strategy; Automotive industry; Emerging automobile manufacturer; Emerging giants; Indian automobile manufacturer; Smaller SUV